- Risk appetite and a weaker US dollar boost AUD/USD.
- US dollar suffers big reversal, ends week under pressure after NFP.
The AUD/USD is having on Friday the best day in weeks boosted by a broad-based slide of the US dollar and also on the back of a recovery of the aussie. The pair is about to end the week hovering above 0.7665, at the highest level in a week.
NFP adds to dollar weakness
Lower-than-expect employment data in the US triggered another leg lower in the US dollar, completing a reversal. The DXY fell from the highest level since November above 91.50 to a two-day low near 91.00. Not even higher US yield limited the decline.
On Friday, the Aussie rose across the board for the second day in a row, recovering further after the tumbling following the Reserve Bank of Australia meeting. The central bank’s tone weighed on AUD/USD that later bounced sharply, erasing all weekly losses.
“We maintain our view that RBA policy combined with concerns about trade tensions with China will keep a lid on AUD/USD. We retain our forecast that a 0.76-0.77 trade range may contain most activity in the coming months”, says analysts at Rabobank.
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